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reverse charge for gold

30 November 2018

I'm a owner of a gold shop...and want to clear my query ...about taking back gold from costumer ...how to calculate if " For example : 10 grms gold of 22 ct and rate for 22ct without gst is 3000 "

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3 Replies

Ranjeet Singh (Corporate Law Matters & Taxation) (565 Points)
Replied 30 November 2018

You need not apply reverse charge in it as reverse charge is currently suspended.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 30 November 2018

The sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9 (4) of the GST act and the jeweller will not be liable to pay tax under reverse charge mechanism on such purchases, .However, if an unregistered supplier of gold ornaments sells it to registered supplier, the tax will apply under reverse charge mechanism But that to also deferred to 30/09/2019, by vide Notification 22/2018

Hence its treated as exempt supply